Some helpful tips for your Home Business

When starting out on your path to financial independence and freedom from the rat race that a Home Business can provide, there is some conventional pieces of wisdom to consider to help guide you from those that have gone on this journey before you. While you will probably blaze a trail in a way that is unique in it's own way, there are nonetheless some tips that can help anyone that is starting their own business. The first tip regards your taxes: Be careful that you do not over deduct. A good rule of thumb is that deducting expenses which are equal to around 60 percent of your income, or more, may be inviting a tax audit. Another important thing to remember in this vein is that if you employ anyone, be sure to pay all the applicable taxes. You must pay unemployment tax, Social Security and Medicare, and of course withhold federal and state income tax. Another tax tip is to be aware of offer-in-compromise. If you are behind on your personal income taxes, you may be able to get caught up fairly easily with this program. If you are just starting your business and are not a Corporation, you are well advised to form one, in my firm opinion. There are too many tax advantages not to and perhaps more importantly, you cut down your personal liability to virtually zero. Just talk to a competent professional about which type of corporate entity is best for your needs. When choosing where to incorporate, The majority of Home Businesses are advised to incorporate in a State in which they do the greatest part of their business. Out-of-State incorporation usually results in additional taxes and/or fees. But not setting up a corporation is perhaps one of the the biggest mistakes you can make. As previously mentioned, a corporation is your shield from personal liability and business debts.

Another important facet of success for your Home Business is to have a Mission Statement. This is like your business philosophy, ultimate goal, and long term plan rolled into one. It will be your guiding light and motivation in dark times. One way to look at a Mission Statement is to consider it the spiritual side of your business. All entities have (or should have) spirits, including your Business. Just do it. A Mission Statement for a real estate development business could be "To provide affordable housing to the maximum number of people", for example. Businesses that have clear goals and a clear mission Statement have a better chance of success than businesses that do not, in my opinion. Remember that once you write out your mission statement, it is not set in stone. You can take it out and modify it from time to time. Have a meeting with the other members of your business and decide which Mission Statement is right for you.